ZLBT Chats

Thursday, May 30, 2013

Gold: Two elephants in a lifeboat

Who's rocking the boat? 
There are currently two players destabilizing global financial markets — like elephants in a lifeboat.

One is the Bank of Japan, with markets uncertain as to how massive expansion of the monetary base will play out.

The second is the Fed, where hints of a taper were enough to send the market into a panic, forcing the Fed to tone down its rhetoric. Emphasis now is on marginal rather than sizable decreases in QE.

Gold broke resistance at $1400, respecting primary support at $1320 and headed for another test of $1500. Uncertainty is high with the metal as likely to break resistance at $1500, signaling a primary up-trend, as to break primary support, which would offer a target of $1200*.


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